In The News

Fredrick Levin Quoted in American Banker Article, "Calif. Supreme Court Lets Borrowers Challenge Wrongful Foreclosures"

Fredrick Levin was quoted in Kate Berry's American Banker article, "Calif. Supreme Court Lets Borrowers Challenge Wrongful Foreclosures," on February 18, 2016. 

The California Supreme Court on Thursday ruled that borrowers may challenge a wrongful foreclosure on the grounds that the assignment of the deed of trust was invalid.

The decision in Yvanova v. New Century Mortgage Corp. has the potential to radically increase the number of lawsuits brought by borrowers, particularly on loans that were pooled into securitized trusts, experts on both sides of the issue said.

Fredrick Levin, a partner at Buckley Sandler, said the decision will breathe new life into the foreclosure defense bar, which believes that a loan assigned into a securitized trust after the trust's closing date makes the assignment void.

"This decision has [the] potential to increase litigation challenging securitized loans," said Levin, who on behalf of banks has long argued that contractual language gives investors and lenders broad latitude to reassign loans.

Click here to read the full article at www.americanbanker.com (subscription required).